breaking

Global Bond Markets Routed as Fed Rate-Cut Bets Evaporate

Government bond markets across major economies are experiencing a sharp selloff as investors abandon expectations for Federal Reserve rate cuts and begin pricing in potential increases. US 30-year Treasury yields have climbed to levels last seen in 2007, while yields have surged globally from Japan to the United States. Mounting wage pressures and a reassessment of inflation risks have caught many fixed-income managers off guard. Portfolio managers at major asset managers say the Fed should provide clearer communication about its likely policy path. The bond vigilante movement signals investors are demanding higher compensation for holding longer-duration securities. Rate expectations have been significantly repriced, with effects rippling through credit and equity markets worldwide.